Professional Documents
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Information on Course
1. Course Name :
FINANCIAL MANAGEMENT
2/1
6. Credit Value: 3
7. Pre-requisite (if any):
BKAF 1023 Introduction to Financial Accounting (for B.Fin, B.Bank & B.RMI)
BKAL 1023 Introduction to Business Accounting (others)
8. Objective(s) of Course :
Students are expected to
1. understand the goal of the firm and the basic principles in financial
management.
2. use the financial data to perform firm valuation and to forecast and plan
firms financing.
3. develop analytical skills in working capital management and short-term
financing for the firm.
4. fully understand the risk and return concept.
5. apply the time value of money concept in the real context of financial
decision making.
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9.
Transferable Skills:
Communication, Critical Thinking and Problems Solving, Team Work and
Leadership.
100%
Topic
50%
50%
Hours
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1.0
INTRODUCTION TO
FINANCIAL MANAGEMENT
1.1 What is finance?
1.2 Financial manager and
financial
management
1.3 Legal forms of business
organization
1.4 The goal of financial
management
1.5 The agency problems
1.6 Financial markets and
institutions
1.7 Principles underlying the
financial management
2.0
FINANCIAL STATEMENTS
2.1 The importance of financial
statements
2.2 Understanding financial
statements
2.2.1 Income Statement
2.2.2 Balance Sheet
2.2.3 Statement of Retained
Earnings
2.2.4 Statement of cash flow
2.3 Taxation and depreciation
from financial perspective
2.3.1 Marginal vs. Average
taxation
2.3.2 Accelerated vs.
Straight line method
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3.3.3
Asset
management
ratios
3.3.4 Profitability ratios
3.3.5 Market value ratios
3.4 Du Pont analysis
3.5
Limitations to ratio
analysis
4.0 FINANCIAL FORECASTING
AND
PLANNING
4.1 Financial planning
4.1.1 Growth as a financial
management goal
4.1.2 Dimensions and
accomplishment of
financial planning
4.1.3 Ingredients to financial
planning
4.2 Percent of sales method
4.2.1 The income statement
4.2.2 The balance sheet
4.2.3 External
financing
needed (EFN)
4.3 Sustainable growth rate
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MANAGEMENT OF CASH
AND MARKETABLE
SECURITIES
8.1 Difference between cash and
marketable securities
8.2 Motives for holding cash
8.3 Cash management objectives
8.4 Understanding float
8.5 Managing the cash inflow
8.6 Managing the cash outflow
8.7 Investing idle cash
8.8 Characteristics of short-term
securities
8.9 Types of marketable securities
9.0
MANAGEMENT OF
ACCOUNTS RECEIVABLE
9.1 Importance of accounts
receivable
9.2 Terms of credit
9.3 Credit analysis
9.3.1 The 5Cs of credit
9.3.2 Credit scoring
9.4 Monitoring of accounts
receivable
9.4.1 Aging schedule
9.4.2 Average collection
period
9.5 Credit collection
9.6 Analysis of credit policy
changes
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42
References:
Main reference :
Ross, S., Westerfield, R., Jordan, B., Joseph, L., & Tan, R. (2012). Fundamental of
corporate finance (Asia Global Edition). Kuala Lumpur: McGraw-Hill.
Additional references:
Keown, A. J., Martin, J. D., Petty, J. W., & Scott, D. F., Jr. (2005). Financial
management: Principles and applications (10th ed.). New Jersey: Prentice Hall, Inc.
Mahfuzah Salim (2012). Fundamental of Financial Management, Questions and Solutions.
Additional Information:
SHARMILAWATI SABKI-COORDINATOR
Email: sharmila@uum.edu.my
Extension number: 6476
Room number: 313/COB Main Building
Consultation hours: Sunday & Wednesday 9.00-11.00 am; Tuesday 2.00-4.00 pm
KHAIRUL ZHARIF ZAHARUDIN
Email: zharif@uum.edu.my
Extension number: 4693
Room number: 2.52/Economic Building
Consultation hours: Monday & Thursday 9.00-12.00 noon
BOO HOOI LAING
Email: hlboo@uum.edu.my
Extension number:
Room number: 359/COB Main Building
Consultation hours: Monday & Thursday 11.00-12.00 noon; Sunday & Wednesday
12.30-2.00 pm
Students copy
RUSMAWATI ISMAIL
Email: wati@uum.edu.my
Extension number: 6472
Room number: 237/COB Main Building
Consultation hours: Tuesday & Wednesday 11.00-12.00 noon & 3.00-4.00 pm